SHANGHAI: The Tatas-owned Jaguar Land Rover (JLR) and its Chinese partner Chery today laid the foundation stone for their first manufacturing facility to build Jaguars and Land Rovers in China, the world's largest car market, under a "milestone" deal worth nearly 1.75 billion.

JLR and Chery Automobile Company Ltd, the British and Chinese carmakers, had recently received formal approval from the Chinese Government for their 50:50 joint venture to make luxury limousines and off-roaders in the booming Communist nation.

JLR and Chery will now accelerate plans to build a joint venture manufacturing plant in Changshu, near the east chinese metropolis Shanghai, as part of a 10.9 billion yuan (nearly 1.75 billion USD) investment that will also include a new research and development centre and engine production facility.

The project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including the marketing and distribution.

The benefits of the joint venture to China include investment, job creation, advanced technology and low carbon solutions.

"The JV underlines a firm commitment from both companies to the world's largest car market for the long term future," both companies said in a joint statement.

Speaking to reporters, Dr. Ralf Speth, JaguarLand Rover Chief Executive Officer, and Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, said: "We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.

"Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers."

China is now the world's biggest car market having surpassed the United States in 2009 in the number of vehicles sold annually with sales last year totalling 18.5 million vehicles and set hit 30 million by 2020.